Gone are the days when buying cars from dealerships and showrooms was the only way. Today, second-hand cars have become an industry of their own, where you can get value-for-money deals on your dream cars. However, as good as it sounds, buying such cars can also become a nightmare if you don’t know what you’re doing.
To avert the risks of paying wrong prices when buying a second-hand vehicle, you must know the workarounds of used car valuation. Dealers or owners can often ask for the wrong amounts to gain ill-profits, but if you know how to find the valuation, they won’t be able to fool you. Today, there are many online sites and free tools that can help you find an old car valuationvery quickly. However, if you don’t have those at your disposal, keep these things in mind to estimate the proper valuation: –
The car’s age
The primary valuation factor behind every second-hand car valuation is its age. A car’s value drops the moment it is purchased and with every year, it depreciates, also known as ‘age-wise depreciation’. Depending on the model, variant, make, and various other supply-demand factors, the car’s value keeps depreciating. Hence, the lesser the car’s age, the lower its depreciation will be, and the higher its value.
The distance it’s been driven
Another important factor for finding a second-hand car’s value is the amount it’s been driven. A look at the odometer, which measures the total distance the car has been driven, will do this job. Usually, a car that has already been driven a lot will attract lower prices rather than one that has just completed a few kilometres.
Additional Read: Top Benefits of Buying a Second-Hand Car in India
Insurance is key
Before you decide to buy a car or apply for a used car loan, first confirm if it is insured or not. Usually, insured cares get higher sale values, which is why many often get third-party insurance. If a car’s insurance isn’t renewed when it’s about to be sold, it will fetch lower prices. Thus, keep an eye out for the car insurance to determine how much you should be paying for it.
Proper maintenance and good condition
Needless to say, a well-maintained car will always attract more eyeballs. Hence, make sure that the used car is in good condition, has been regularly serviced, and parts such as the engine oil, oil filter, gear oil, air filter, etc. have been changed to be in a great condition.
A second-hand car’s ownership frequency also determines its value. Thus, you must check the number of owners the car has had, the higher they are, and the lower will be the car’s valuation.
Additional Read: Top Used Cars to Go For This 2020
There are various other factors behind a second-hand car price check. Having proper documentation, the car details, variant, registration year, whether the model is in demand or not, its colour, etc. determine its value as well.
In conclusion, make sure that you get the intricate details right when determining a second-hand car’s price. If you’re looking to buy one, don’t let the financial barriers stop you. Tata Capital will provide the support, with their flexible loan tenures, easy EMI options, and attractive used car loan interest rates.